Preparations for the launch of a standalone stock exchange in Brunei Darussalam look to be moving ahead, supported by progress on a regulatory framework for the bourse.

The Sultanate’s long-awaited exchange could open as early as next year if the groundwork is in place, according to the Autoriti Monetari Brunei Darussalam (AMBD), which oversees the country’s financial sector and is developing regulations to govern the bourse.

Officials see a national stock market as pivotal in Brunei Darussalam’s plans to develop its capital markets and boost foreign inflows, and is also in line with a broader push to diversify the economy away from hydrocarbons.

Focus on financial services

The importance of harnessing private sector participation in the Sultanate’s economic development was a key theme in the official address given by His Majesty Haji Hassanal Bolkiah, the Sultan and Yang Di-Pertuan of Brunei Darussalam, in early March at the opening of the 12th session of the Legislative Council.

According to Yusof Haji Abd Rahman, managing director of the AMBD, in this sense a local stock market could “act as a significant catalyst” for economic growth.

Speaking at an event organised by the Brunei Association of Banks in early March, Rahman told participants that a stock exchange would strengthen the financial industry and boost its contribution to GDP.

“Companies in the country will have alternative funding avenues other than bank loans,” he noted. “It will also provide a platform for Bruneians to invest in shares conveniently.”

Expanding the financial sector is one of the objectives mapped out in Brunei Darussalam’s long-term national vision, Wawasan 2035. As part of the programme, which was launched in 2008, the Sultanate is looking to boost the sector’s contribution to GDP from 5% in 2015 to at least 8%.

Laying the groundwork

While the idea of launching its own bourse has been a subject of discussion for several years, 2015 brought concrete signs of progress from the AMBD. Commenting in May, the regulator said it was hopeful that the preconditions required for launching a security exchange could be met by 2017.

Speaking late last year, Pehin Dato Suyoi Osman, the minister of development, said that the launch of a stock exchange was “expected to contribute significantly” to the expansion of Brunei Darussalam’s financial sector.

The minister noted, however, that both the AMBD and the Ministry of Finance needed to ensure the necessary groundwork was in place ahead of a launch, particularly in terms of legal and physical infrastructure, investor protection and public awareness.

While the AMBD has signalled that the bourse will initially focus on equities trading, bonds and sukuk (Islamic bonds) could be added at a later stage.

Private sector support

While state agencies are leading the push to establish a regulatory framework for the exchange, the private sector is also helping to raise public awareness about equity investment.

Investment firm Baiduri Capital, a subsidiary of Baiduri Bank, held a series of seminars in January on financial analysis and security trading. This followed on the launch last year of the company’s stock trading portal, which allows Bruneians to trade on the exchanges of Singapore, Malaysia and Hong Kong.

Officials from the bank have welcomed plans to open a domestic exchange, saying it would both allow Bruneian firms access to capital and provide opportunities for locals to invest in the national economy.

“It might not be easy to identify many companies interested [in] list[ing], because Brunei Darussalam is small, but I think there are some,” Pierre Imhof, CEO of Baiduri Bank, told media last year. “I think it could definitely put the country in a different playground in terms of business development, especially in the financial sphere.”

With Brunei Darussalam’s relatively small size likely to limit listings early on, state-owned enterprises could have a role to play in driving the exchange’s development in the initial stages.

Banks, tourism operators and manufacturers have been cited as among the private sector players to be targeted to listing. In time, the exchange could also provide avenues for small and medium-sized enterprises, which account for a significant portion of the private sector, to raise capital and fund expansion.

DESPITE first making its appearance in the Sultanate during the 1940s, Kuih Mor continues to be a household favourite today as a tea time snack or festive treat particularly during Hari Raya Aidil Fitri.

Siti Norhafizah Hj Bagol, a final year student at Universiti Brunei Darussalam who researched on Kuih Mor as part of her Brunei Traditional Industry module, said the three-ingredient sweet treat may have existed in Brunei as early as the 1940s when padi was known to have been grown to make different food items.

Over time, the cookie has also become a popular door-gift choice often handed out at Malay weddings or gatherings, said Siti Norhafizah.

Made with flour, oil and granulated sugar which have been ground into a powder, the bite-sized biscuits have a crumbly texture and are coated with powdered sugar.

The age-old technique of making Kuih Mor by hand has however changed over the course of time, with many now opt…

BY COMMAND of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam, the Prime Minister’s Office hereby announces that His Majesty has consented to the transfer and appointment of the following senior officers – Dato Paduka Haji Mohd Juanda bin Haji Abdul Rashid, Permanent Secretary (Law and Welfare) at the Prime Minister’s Office as well as the Director of Anti-Corruption Bureau and Solicitor General has been transferred to the Ministry of Culture, Youth and Sports as the Permanent Secretary at the Ministry of Culture, Youth and Sports; and Datin Elinda binti Haji CA Mohamed, Special Senior Duties Officer, Ministry of Home Affairs has been appointed as Permanent Secretary at the Prime Minister’s Office and Director of Anti-Corruption Bureau.